Federal regulatory body says megapublisher has submitted required information on proposed purchase of rival; further extension puts next step six weeks away.
The great game-industry saga of 2008 continued today with the next step in Electronic Arts' protracted takeover attempt of Take-Two Interactive. In a filing this morning with the Securities and Exchange Commission, EA announced that it was "in substantial compliance" with the Federal Trade Commission's information requests.
Early last month, the FTC had requested additional information to ensure that the proposed buyout--which turned hostile in March--did not violate US antitrust laws. Some concerns had been raised because the deal would see EA Sports' sole major rival, 2K Sports, subsumed into EA's multibillion-dollar organization.
According to a recent earnings report, 2K Sports is losing money despite holding exclusive third-party publishing rights to Major League Baseball. EA has a complete monopoly on all major licensed football games, including NFL, NCAA, and Arena leagues, as well as the sole rights for FIFA-branded soccer games. Both companies develop and publish NHL hockey and NBA basketball games, although 2K recently let its NCAA College Hoops license lapse.
As a result of today's FTC announcement, EA's $2 billion bid for Take-Two will continue beyond its previously announced July 18 deadline. Although the Redwood City, California-headquartered company today promised no action until August 21, its offer currently stands at $25.74 per share of Take-Two stock, which was trading at $24.26 on the NASDAQ as of press time. Despite the fact that the offer would now earn its shareholders a profit, Take-Two's board has repeatedly and vociferously refused EA's advances, citing record-shattering sales of Grand Theft Auto IV as proof that the company would fare better on its own.
2ksport rocked sinced dreamcast well the whole Take 2 thing rocks, EA is getting on my nerves ,ea was good during the 90's far as sports games till 2k showed off with NFL2k NBA2k which grabed every one's attention, till NFL2k5 came out lol madden 2005 couldnt keep up with, so they cried like lil girls to the nfl and espn, which put a hold on 2k nfl rights, which left every one to have no choice on what kind of nfl game to play but madden, take 2 dont join ea at no cost what so ever, if yall do ea will force us to play nba live kiddie hoop, if yall do come close to ea or have no choice, have a talk with microsoft im sure they will back yall up on a offer
EA is pathetic man they can't make any good games so lets just buyout all the competition and now that ActivisionBlizzard is way larger and better then them their desperate what a bunch of tools.
If EA succeed in this takeover bid, I'm sure we can say goodbye to high quality sports games in the future.
take2's board of directors who probably own the most stocks are holding out for a more sweeter buyout i bet..too bad it's not gonna happen , and they should just take the money and run.
FrankenLife: You have one of the better understandings of economics that I have seen here on gamefaqs. I applaud your theory on how things could/would go but you also said that you want a "free market." In a truly free market, there is no government regulations to stop monopolies because in a strictly capitalistic society, the economically "inferior" businesses go out of business or are consumed by the economically "superior" businesses. I personally do not want to see EA take over Take Two Interactive as I see that as a bad thing for consumers (and the fact I haven't bought a first-hand copy of an EA game in probably 5 years) but, in an economics sense, this a potentially good thing (if you believe in the capitalist system).
good idea bulldog... i would say that might be against the agreement, but since it is a hostile take over, they could actually do it. it would lesson the company's value though, and i doubt they will do it anyways..... blakk, between activision and EA that is pretty much how things already are. it isnt even you play our games, it is you play our cheap excuse for a game that we made as cheaply as possible and might actually fix the glitches of if we feel like it later down the road. the real question is, what can we do to protect ubisoft? i think the TTwo situation is just pretty much all over with and EA has them, because the stock holders just wan their money, and the government is going to do squat about it. They rather act like they are doing their job when in reality they just waste time and our tax money.
If the developers are cool enough, they'll sell the rights to their games to someone other than EA before the hostile takeover is completed.
This takeover will put a cramp in the gaming industry. Soon, it'll be "you play our games, or you don't play at all." In some instances, I will definitely choose the latter.
Personally I would want take-two to stay independent, but against the EA machine I feel them moving to ActivisionBlizzard would be the best move for all party's (well apart from EA)
if Take Two tries to sell of 2K Sports -- or if the employees try to burn the place down -- EA will sue in court to stop them, and they would win and get all of Take Two's assets anyway. Once a company goes public, they are limited in how much they can resist a takeover effort.
Take-Two and Rockstar had been doing a gr8 job w/ GTA and it would be a shame if EA gets in the middle of that.
If take two gets bought out, the take two employees could burn down all of their offices and wipe their hard drives clean. They could also record it and put it on Youtube set to the Beastie Boys song Sabotage.
Let's see they are already the largest publisher in the market, they are going to devour Take2 and they own about 25% of Ubisoft. Now I am not very well versed in anti-trust laws, but does noone see a problem with this? Kudos to the Take2 board though, I am surprised that they have been able to fight EA off for so long, not to mention their shareholders. I have a suggestion for Take2 though if they are about to be swallowed and they can no longer prevent it, try to sell off the sports division, Bethesda and Rockstar to entirely Microsoft, Nintendo, Sony or a combination of all 3. Sure this will torpedo your company, but it will keep EA's hands off of some of your major properties.
"Montrealien To all the calls for boycotts, doo eet, pls pls pls. So we can see your useless voices in action. The millions of people that play EA sports games, and EA games in general don't even know Gamespot exists...and don't care either. " So how come theres millions and millions of people on Gamespot and using it?
Damn, its been almost 5 whole months now EA, Take Two doesnt want your name or the burger king logo on their work and games. its that simple.
hey i have an idea, instead of stepping up to the quality that we promise in all our games, we just buy out all the companies willing to actually work for the consumers!!
EA is a horrible company, with mediocre quality at best. People buy in to media, and that is why they have so many "Fans". I know I will not purchase anything from them if this happens. I already refuse to buy any EA games, so this will just further limit my choices as well as quality in the majority of games available.
What's with all the "you people are over reacting--EA's not evil!" comments? Is today devil's advocate day?
To all the calls for boycotts, doo eet, pls pls pls. So we can see your useless voices in action. The millions of people that play EA sports games, and EA games in general don't even know Gamespot exists...and don't care either.
"If EA already already holds several exclusive licenses, how can it NOT violate anti-trust laws if they purcahse their biggest sports competitor?" I have a great deal of difficulty trusting the Federal Trade Commission or the Justice Department, especially under this current administration.
i don't really see how it could not be a monopoly, who else makes sports games much less hope to compete with a the combined might of the current 2 top dog publishers in sports games? I also agree with FrankenLife, the rabid appetite of EA for controlling large portions of the gaming market while being far more concerned with turning a profit than with the quality of their games is not a good portent for the future of the industry.
....and the saga continues :roll: Geez EA, getting a bit stalker-ish, aren't we?? Y'know EA the word is called "No".....maybe you've heard of it?
If EA already already holds several exclusive licenses, how can it NOT violate anti-trust laws if they purcahse their biggest sports competitor?
Not a video game monopoly, just a Sports Video game (Genre) Monopoly. Thanks for not standing up for the folks FTC! Don't buy EA games. If you MUST play an EA game, then buy it used.
Yes I understand that EA has a sort of strangle hold on most sports games and that if you want to play a video game version of your sport of choice you will probably have to buy an EA game. If this is really important to you, then you can support the second hand market in stead of EA. Buy them from ebay or other used game sources. Obviously everyone can't do that, but if enough people make it a point to only buy used versions of EA's sports games then they are at least reducing their sales. Also creating increased demand in the second hand market could have an effect on the retail market the would reduce prices in order to stay competitive. Yes there are many many different major corporations that only care about where you spend your money, and EA is not special in that regard. I did not state that they were special for their apathy. Nor did I state that most other corporations do care about you. Though there are some, but they only care because your well being and education determines how much of your money they receive. Take2 may not care about me or you. But they do care about making good games. EA seemingly doesn't care about making good games. They care about turning over a franchise as quickly as possible. They know that with enough hype and gloss on a game it will sell well enough to make a profit regardless of how much substance the game actually has. Some of you are saying that getting some of Take2's people in to EA could help them improve some of EA current franchises. That is possible, but not likely. That would cost money and slow production. They would end up having more people on games team. These people would then fix problems and take up time improving things. That is increased labor dollars and delay. Not to mention the delay in releasing the franchises they were purchased to produce. I really like how someone previously compared this to the Comic book industry collapsing. What happens if the economy continues in a downward slope and people buy less games and less systems. All of EA's big spending would turn from profit investment to debt. In order to reduce spending and curb their debt they would have to lay off many development teams. These teams might have stayed alive other wise. This is not a wise decision for the gaming industry. If all gaming goes under just a few roofs, then it won't take much to take it all down. Now, I am not saying that it will happen, but I could. And I don't like it. This a perverted twist on capitalism. I want a free market with many competitors.
Man, It's like EA won't rest until they have complete control over the monopoly that they already are. T2 has repeatedly turned down their offer, what makes EA think they will break anytime soon?
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